Caesar's stock plunges on worries about Vegas hotel bookings
Posted August 1, 2018 2:01 p.m. EDT
(CNN Money) — Las Vegas casinos have some bargains on hotel rooms right now. That sent the stocks of casino operators on a wild ride Wednesday.
Shares of Caesar's Entertainment fell as much as 24% Wednesday and trading was halted several times.
The company posted generally strong results early Wednesday. It recovered from a large loss last year to report a narrow profit.
But during a midday call with analysts, CFO Eric Hession mentioned that the company was seeing "rate pressure" on rooms because of weak bookings along the Las Vegas strip, and warned that revenue per room would be essentially flat in the third quarter. That sent shares of Caesars and other casino stocks like MGM Resorts, Wynn Resorts and Penn National Gaming tumbling
Caesar's CEO Mark Frissora had to assure investors that the company sees things returning to normal at the end of the year, and that it was sticking with its full-year guidance.
"We know what the bookings look like through the end of the year. And so we don't have concern in our forecast," he said. "We said that we saw some weakness in July and August, but then strengthening in September."
"It's not like you look at one month or two months, and you say, 'Oh, that's it for Vegas,' right? That's not the way it works," he added.
The assurances helped bring shares of Caesar's back from session lows, recapturing roughly half the losses. The other stocks also moved off their lows.